Business Studies IGCSE – Chapter 6

MOTIVATING EMPLOYEES
Objectives
Why people work ?

The meaning and importance of motivation in

workplace

Key motivational theories

Financial and non-financial methods of

motivation
Questioning You
Why do you go to school ? What for ?

How hard you do for your studies ?

Do you love a subject in your school ?

Why ?
The Importance of Well-Motivated
Workforce
What is “motivation” ?

• Desire to act in achieving a goal.

Why does people work ?

• Most will answer “for money” / “cover my living cost”

Actual answer should be :

• Aiming for higher status

• Better living standard
• Facilities that are provided by companies
• Loving what they doing
• Etc
Benefits from Having Well-
Motivated Workers
Improved productivity

Low rate of absenteeism

Better quality of output

Low rate of labour turnover

Concept of Human Needs -
Maslow’s Hierarchy

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physical Needs
Concept of Human Needs -
Maslow’s Hierarchy
Physical needs: our basic needs to stay alive. Ex:
food and water
Safety needs: feeling safe from dangers, and
knowing that they have a job security
Social needs: accepted by others, feeling loved
and trusted
Esteem needs: respected by the others, for some
people having high level of status is a must
Self-actualization: Reaching one’s potential
 Key Motivational
Theories
1. F.W. Taylor – Scientific
management theory
2. Fredrick Herzberg – Two factors
theory
F.W. Taylor – Scientific
management theory
Easiest way to
improve output and
reduce inefficiency
(being more efficient)
is reward employees
with money.
Such as : Bonus
when they achieve
KPI
Fredrick Herzberg – Two factors
theory (Hygiene Factors)

Working conditions Relationship with Salary Supervision

others

Company policy
and administration
Fredrick Herzberg – Two factors
theory (Hygiene Factors)

The work
Responsibility Advancement Achievement
itself
Methods of Motivation
Non – Financial
Rewards Job rotation
Job
enlargement

Job Quality
enrichment circles

Team
Training
working
Methods of Motivation
Financial Rewards
Hourly – wage rate

Commission

Promotion

Bonus – schemes

Fringe benefits

Piece – rate

Profit sharing
How to Choose the Best Method ?
What is the cost of the business using particular method ?

Is it motivation that what is employee need ?

Some method can only be used in specific industry. For

example: wage – hour can be used for part time employees

There are employees who prefer higher pay to leisure time

and inverse
Thank you